Metropolitan Sewerage District MSD · Portfolio. There has been no change in the makeup of the portfolio from the prior month and all items meet statutory regulations and well as

Metropolitan Sewerage District of Buncombe County, NC

AGENDA FOR 6/11/14 Agenda Item Presenter Time

Call to Order and Roll Call VeHaun 2:00

01. Inquiry as to Conflict of Interest VeHaun 2.05

02. Approval of Minutes of the May 21, 2014 Board Meeting.

VeHaun 2:10

03. Discussion and Adjustment of Agenda VeHaun 2:15

04. Informal Discussion and Public Comment. VeHaun 2:20

05. Report of General Manager Hartye 2:30

06. Consolidated Motion Agenda 2:45

a. Consideration of Bids for Sanitary Sewer Rehabilitation Project – East State Street at West Street.

Hartye

b. Consideration of Bids for Sanitary Sewer Rehabilitation Project – Mt. Vernon Place Phase II

Hartye

c. Consideration of Bids – Sodium Hypochlorite Contract.

Hartye

d. Consideration of Bids – Sodium Bisulfite Contract. Hartye

e. Consideration of MSD FY15 Non-City of Asheville Road ROW Paving Restoration Contract.

Hartye

f. Report on MSD Paving Agreement with the City ofAsheville.

Hartye

g. Consideration of Developer Constructed Sewer Systems: Biltmore Lake Block “J”; Camp Dorothy Walls and Willow Creek Phase 3.

Hartye

h. Cash Commitment/Investment Report – Month Ended April 30, 2014.

Powell

07. Public Hearing: Consideration of Resolution Adopting the Final Budget for FY2014-2015 and Schedule of Sewer Rates and Fees.

VeHaun 3:00

08. Old Business: VeHaun 3:30

09. New Business VeHaun 3:35

10. Adjournment (Next Meeting 7/16/2014) VeHaun 3:40

STATUS REPORTS

MSD Regular Board Meeting

BOARD OF THE METROPOLITAN SEWERAGE DISTRICT

MAY 21, 2014

1. Call to Order and Roll Call:

The regular monthly meeting of the Metropolitan Sewerage District Board was

held in the Boardroom of MSD’s Administration Building at 2:00 p.m., Wednesday, May

21, 2014. Chairman VeHaun presided with the following members present: Ashley,

Belcher, Bryson, Frost, Kelly, Manheimer, Pelly, Root, Russell, and Watts. Mr. Stanley

was absent.

Others present were: Thomas E. Hartye, General Manager, William Clarke,

General Counsel, Gary McGill with McGill Associates, P.E., Patty Beaver with CIBO,

and MSD staff, Ed Bradford, Scott Powell, Peter Weed, Ken Stines, Mike Stamey,

Matthew Walter, Jim Hemphill and Sondra Honeycutt.

2. Inquiry as to Conflict of Interest:

Mr. VeHaun asked if there were any conflicts with the agenda items. No conflicts

were reported.

3. Approval of Minutes of the April 16, 2014 Board Meeting:

Mr. VeHaun asked if there were any changes to the Minutes of the April 16, 2014

Board Meeting. With no changes, Ms. Frost moved for approval of the minutes as

presented. Mr. Russell seconded the motion. Voice vote was unanimous in favor of the

motion.

4. Discussion and Adjustment of Agenda:

None

5. Informal Discussion and Public Comment:

Mr. VeHaun welcomed Ms. Beaver with CIBO. There was no public comment.

6. Report of General Manager:

Mr. Hartye reported the Preliminary Budget for Fiscal Year 2015 will be

presented at today’s meeting. The Final Budget will be presented to the Board and a

Public Hearing will be held on June 11th

. With regard to the Budget, the Personnel, CIP

and Finance Committees met prior to this meeting and will make individual

recommendations to the Board. He further reported that under New Business the Board

will go into closed session to discuss a legal right of way acquisition matter.

Mr. Hartye expressed his appreciation to Lisa Tolley and Kay Farlow for hosting

an MSD booth at the 5th

annual Home & Garden Expo at the WNC Ag Center on April

26 & 27. This event was sponsored by the Asheville Home Builders Association. He

stated this was a great opportunity for public education with lots of positive comments.

Everyone loved the new pot scrapers and thought that was a wonderful idea.

Mr. Hartye expressed his appreciation to Sandra Moore for heading up the annual

MSD cleanup of the river banks along the French Broad River in conjunction with

Riverlink, which yielded 18 contractor bags full of trash and cans.

Mr. Hartye reported that Merie Love of 195 Governors View Road called to say

everyone that came out to her home regarding her sewer stoppage was wonderful. She

said everyone was so nice and polite and did a wonderful job and couldn’t believe the

problem was fixed that quick, and wanted MSD to know they have some great guys

working for them. He expressed his appreciation to Grady Brooks, Shaun Buckner, Ray

Lunsford, Alan Knighten, Pete Cole, Roy Lytle, Billy Cantrell, Robert Denny, Mitch

Metcalf and Johnny Mull. He further reported a call was received on April 17th

from Don

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May 21, 2014

Page Two

Nicholson of 126 South Main St. in Weaverville who expressed appreciation for the work

and customer service provided by Roy Lytle and Crew (Tommy Brooks, Robert Denny,

and Johnny Mull).

Mr. Hartye reported the May Right of Way Committee Meeting has been

cancelled. The next meeting will be held at 9 a.m. on June 25th

. The next regular Board

Meeting and Public Hearing will be held on June 11th

at 2 p.m.

7. Report of Committees:

Personnel Committee:

In the absence of Mr. Stanley, Mr. Hartye reported the Personnel Committee met

April 29, 2014. Ms. Thomas reviewed several areas of activity within the Human

Resource Department and Mr. Hemphill presented staff recommendations regarding the

Self Insured Health Plan and Pay Adjustment. The Committee moved the Board approve

a 2.5% pay adjustment for all employees and no increase or changes to the medical

insurance contributions. With no questions or comments, Mr. VeHaun called for a motion

to approve the Personnel Committee recommendation. Ms. Manheimer moved. Mr. Pelly

seconded the motion. Roll call vote was as follows: 11 Ayes; 0 Nays.

CIP Committee:

Mr. Watts reported the CIP Committee met May 1, 2014. Mr. Bradford gave a

power point presentation on the highlights of the current and proposed Capital

Improvement Program (CIP) as well as the CIP priorities and review of the Ten-Year CIP

document. The Committee recommends endorsement of the CIP Budget for FY 14-15 in

the total amount of $22,760,555. With no questions or comments, Mr. VeHaun called for

a motion to approve the CIP Committee recommendation. Ms. Frost moved. Mr. Watts


Finance Committee:

Mr. Kelly reported the Finance Committee met May 14, 2014 to consider the

Preliminary Budget for FY 2014-2015 and Schedule of Sewer Rates and Fees. Mr.

Powell reported the Committee proposed a 2.5% domestic rate increase; continuation of

the Industrial Rate Parity Plan, which is in year 15 of 20 and has an average impact on

industrial users of 4%. He further reported the Budget in total is $49,173,451 and

includes $22.8 million CIP Budget, a $15.3 million O&M Budget with recommendations

from the Personnel Committee, a Capital Equipment Replacement Budget of $0.6

million, and Debt Service payments of $10.4 million. The Committee recommends

approval of the Resolution adopting the Preliminary Budget for FY 2014-2015 as well as

the Proposed Schedule of Fees and Charges – FY2015. With no questions or comments,

Mr. VeHaun called for a motion to approve the Finance Committee recommendations.

Mr. Root moved. Mr. Watts seconded the motion. Roll call vote was as follows: 11

Ayes; 0 Nays.

8. Consolidated Motion Agenda:

a. Consideration of Developer Constructed Sewer Systems: Bradley Street;

Bradley Street Phase II and Onteora Oaks:

Mr. Hartye reported the Bradley Street Project is located inside the District

boundary at the intersection of State Street and Bradley Street in the City of

Asheville. The project included extending approximately 169 linear feet of 8-inch

public gravity sewer to serve a three (3) unit residential development.

Mr. Hartye reported the Bradley Street Phase II Sewer Extension Project is

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May 21, 2014

Page Three

located inside the District boundary along Bradley Street in the City of Asheville.

The project included extending approximately 225 linear feet of 8-inch public gravity

sewer to serve the eight (8) unit residential development.

Mr. Hartye reported the Onteora Oaks Sewer Extension Project is located inside

the District boundary off Onteora Boulevard in the City of Asheville. The project

included extending approximately 1,226 linear feet of 8-inch public gravity sewer to

serve the twenty-eight (28) unit residential development.

Mr. Hartye reported that staff recommends acceptance of the developer

constructed sewer systems. All MSD requirements have been met.

b. Cash Commitment/Investment Report – Month Ended March 31, 2014:

Mr. Powell reported Page 25 presents the makeup of the District’s Investment

Portfolio. There has been no change in the makeup of the portfolio from the prior

month and all items meet statutory regulations and well as the District’s investment

policy. Page 26 is the MSD Investment Manager report as of the month of March.

The weighted average maturity of the investment portfolio is 209 days. The yield to

maturity is 0.55% and exceeds MSD’s bench marks of the 6 month T-Bill and

NCCMT cash portfolio. Page 27 is the MSD Analysis of Cash Receipts. Monthly

and YTD Domestic and Industrial sewer revenue are considered reasonable based on

timing of cash receipts in their respective fiscal periods. YTD Facility and Tap fees

are above historical trends due to the timing of 7 cash receipts from developers as

well as fees being budgeted conservatively. Page 28 is the MSD Analysis of

Expenditures. The District’s Monthly and YTD O&M expenditures are considered

reasonable based on historical trends. Due to the nature of the variable rate bond

market, Monthly and YTD expenditures can vary year to year. Based on current

variable interest rates, debt service expenditures are considered reasonable. Due to

nature and timing of capital projects, YTD expenditures can vary from month to

month. Based on the current outstanding capital projects, YTD capital project

expenditures are considered reasonable. Page 29 is the MSD Variable Debt Service

report. The 2008A Series Revenue Refunding Bonds are performing better than

budgeted expectations. As of the end of April, both issues have saved District rate

payers $3.3 million dollars in debt service since April, 2008.

Mr. Kelly moved the Board approve the Consolidated Motion Agenda as

presented. Mr. Russell seconded the motion. With no discussion, Mr. VeHaun called for

the question. Roll call vote was as follows: 11 Ayes; 0 Nays.

9. Consideration of Resolution Adopting the Preliminary Budget for FY 2014-2015

and Schedule of Sewer Rates & Fees:

Mr. Powell reported on Page 30 are the Finance Committee recommendations for

approval of the proposed FY2014-2015 Budget and Resolution as well as the proposed

Schedule of Fees and Charges for FY2015. Page 31 is a graphical representation of the

budget resolution (Flow of Funds Chart). Page 32 is the Resolution adopting the

Preliminary Budget & Sewer Use Charges for FY2014-2015, and Page 36 is the proposed

Schedule of Rates & Fees – FY2015. Mr. Belcher asked Mr. Powell to go over the Flow

of Funds Chart. Mr. Powell went over the details of the Chart and called for further

questions. With regard to the Industrial Parity Plan, Mr. Pelly asked what the term

“inside/outside” means. Mr. Powell stated MSD has individuals it serves that are outside

the District boundary. Mr. Clarke stated the District’s boundaries were established when

the District was first created. The District’s boundary is extended automatically when a

city within the District extends its boundaries. Otherwise, extending the District’s

boundaries is difficult. As a result, the District treats wastewater from a number of

locations outside the District. These customers are charged a slight differential rate. Mr.

Powell added the difference is only one-cent per CCF which is de minimis.

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May 21, 2014

Page Four

Mr. Powell reported behind the Introduction tab (Page 44) is the District’s Budget

message. Included in the message is:

Current Year Highlights – domestic and industrial revenue are expected to meet

budgeted projections.

Operating Budget - outlining the proposed $15.4 million operations and maintenance

budget and proposed changes for the upcoming year.

Capital Improvement Program - outlining the proposed $22.8 million construction

budgets as well as the outstanding debt and debt service.

Sewer Rate Increase - outlining the past five years domestic rate increases and the

proposed FY15 domestic rate increase of 2.5%.

Mr. Powell reported Page 53 begins the Budget Policies & Process section. This

section is a description of the budget process including the Statutory and Bond Order

requirements, budget administration, and if need budget amendments. Page 56 briefly

describes the forecasting methodology and includes the current business plan which

outlines the current year proposed budget as well as estimates of needs for the next nine

years.

Mr. Powell reported Page 58 is the proposed $49,173,451 FY15 budget which

incorporates the following:

► 2.5% domestic rate increase

○ .68 cent increase in the average single family monthly bill

○ Monthly bill will go from $27.81 to $28.49

► Continuation of the Industrial Rate Parity Plan

○ MSD in year 15 of 20

○ 4% average increase for the industrial section

► Facility and Tap Fee remain at 2012 levels.

► 1.0% Rate of Return on investments

► .99% increase in Salaries and Benefits which has an impact of $117,000. Includes

Personnel Committee recommendations as to Salary Adjustments, Self-insurance

Funding and GASB 45 OPEB Funding as well as State required Retirement

contribution and unemployment funding.

► 4.2% increase in Material Supplies and Services which has an impact of

$253,679.

Mr. Powell reported page 66 starts the Operation & Maintenance section. This is

a detailed accounting of the proposed budget by department as well as current year

projected and prior year actuals. Page 79 starts the Insurance Fund section. This is a

concise overview of the various insurance funds along with their respective proposed

budgets and FY 13 actuals and current year projected actuals. Page 84 starts the

Replacement Fund section. This is an overview of the various insurance funds along with

their respective proposed budgets and FY13 actuals and current year projected actuals.

Page 89 starts the CIP Program section. This is an overview of the CIP program ran by

the engineering department along with their proposed current year budget and projection

of needs for the upcoming nine years. Page 102 starts the Debt Financing section. This

is an overview of debt management as well as a brief description of capital projects

funding. A detailed listing of current outstanding debt as well as an aggregate debt

service for each outstanding issue is available and includes the most recent debt issuance.

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May 21, 2014

Page Five

Page 111 starts the appendix section. This includes the proposed FY15 budget resolution

with the schedule of rates and fees. Also included is a flow of funds which is a graphical

representation of the budget resolution. Mr. Watts asked Mr. Powell to summarize how

the District can tolerate a 20% budget increase and a 2.5% increase in rates. Mr. Powell

stated the Bond Issue that MSD just issued in the amount of $28 million was for projects

that were done over the last three (3) years. Those monies go back into reserves. The

Business Plan allows MSD to take out of reserves money to pay for on-going Capital

Improvement Program (CIP) needs over a ten-year period. Depending on the needs of

the CIP, monies will come out of reserves until the MSD issues debt, and in that year,

contributions will be made to unrestricted reserves to meet any unforeseen needs. Debt is

a vital component of the District’s CIP Program. Mr. Hartye stated the CIP for this year

has spiked compared to the remaining years in the current CIP. A study is being done for

the Plant that will bring out some projects that will need to be added on to the CIP in the

next 10 years and the Engineers have been encouraged to phase-in improvements over

time. He further stated a lot of the components at the plant have reached their useful life

and some have been replaced. In addition, MSD needs to plan for new regulations. Mr.

Powell noted that MSD’s 2.5% increase is less than the national average of 5.1%. With

no further discussion, Mr. VeHaun called for a motion to approve the Resolution

adopting the Preliminary Budget for FY2014-2015. Mr. Watts moved. Mr. Russell


10. Old Business:

None

11. New Business:

Mr. Clarke called for a motion to go into closed session to discuss a

condemnation matter of MSD vs. Roberts on the Lower Smith Mill Creek line. Ms.

Manheimer asked to be excused from deliberation and vote on this item.

At 2:42 p.m., Mr. Watts moved the Board go into closed session. Mr. Ashley

seconded the motion. Voice vote was unanimous in favor of the motion.

At 2:49 p.m., the Board went back into open session. Mr. Kelly moved the Board

approve a settlement of $165,000 in MSD vs. Roberts. Ms. Frost seconded the motion.

Voice vote was unanimous in favor of the motion.

In unrelated business, Mr. Clarke stated the MSD Board as an organization and

Finance staff deserve great credit for the recent bond purchase in the amount of $28

million dollars. He further stated a refinance was done two years ago that came in at a

total all-in interest cost of 4.13% which the Underwriters said was a record, but the most

recent bond purchase came in at a rate of 3.59% which is even less.

With regard to the lawsuit involving the City of Asheville the State of NC &

MSD, Mr. Clarke stated that arguments will be heard in Raleigh on Friday, but does not

expect a decision to be made at that time. He will keep the Board posted on any

developments.

12. Adjournment:

With no further business, Mr. Kelly moved for adjournment at 2:59 p.m. Mr.

Pelly seconded the motion. Voice vote was unanimous in favor of the motion.

Jackie W. Bryson, Secretary/Treasurer

MEMORANDUM

TO: MSD Board

FROM: Thomas E. Hartye, P.E., General Manager

DATE: June 5, 2014

SUBJECT: Report from the General Manager

• Fiscal Year 2015 Budget

The Final Budget will be presented to the Board and a Public Hearing will be held atthe meeting June 11th. Due to its size, we did not include the full budget in our send outbut the item within the agenda has a link to the document on our site where you canview or download. If you would like us to provide either a digital or hard copy pleaselet us know. Attached is a 2-page synopsis of the FY 2015 Budget that you may finduseful.

• Paving

Each year MSD spends a great deal of money on repaving streets as a part of bothoperations and the Capital Improvement Program. This is accomplished through bothdirect contracts and subcontracts for the various types of projects. This coming fiscalyear MSD will spend approximately $2.2 million just for paving. Generally when MSDreplaces sewer lines in the street, we restore the trench and then overlay the entire roadfor the length of the work. MSD utilizes trenchless technology whenever possible toavoid disruption to pavement and the associated cost.

• GFOA Certificate of Achievement for FY 2013 CAFR

The Government Finance Officers Association has recognized MSD with a Certificate ofAchievement for the Fiscal Year 2013 Comprehensive Annual Financial Report(CAFR). Many thanks to Scott Powell and Teresa Gilbert.

• Clean Air Compliance Award

Attached is a letter from the Western North Carolina Regional Air Quality Agencyrecognizing MSD for compliance with all the air quality rules and regulations for 2013.Congratulations and thanks to the Plant operation and maintenance folks.

• Kudos§ Attached is a letter from Lloyd Johnson for work performed by MSD contractor Terry

Brothers, Kevin Devlin was the MSD Inspector.

§ Attached is an email from Rick Winkenwerder . Thanks to Mike Stamey, Shane Meadows, Carl Ellington, Jason Price, Marvin Felder, Jamie Foxx, Keith Gass, and Kevin Johnson.

• Board/Committee Meetings/Events

The June Right of Way Committee Meeting has been cancelled. The next Right ofWay Committee meeting will be held at 9 am on July 23rd. The Personnel Committeewill meet July 15th at 9am. We will have an employee appreciation lunch behindmaintenance on July 15 at 11:30am. The next Regular Board Meeting will be held onJuly 16th at 2 pm.

MSD FY15 BUDGET/RATE SYNOPSIS

Ø Total Budget $49,173,451

1. CIP (Rehab Construction) $22,760,555 2. Debt Service $10,389,488 3. O&M $15,391,058 4. Capital Equipment $ 632,350 See graphs other side

Ø The 2.5% rate adjustment is necessary to fund sewer system

rehabilitation/replacement projects as well as necessary treatment plant improvements of $185.9 million over the next 10 years.

Ø The District’s sewer system consists of approximately 5 million feet

of 6” to 66” pipe and over 28,000 manholes, much of which was constructed in the 1920’s, 30’s, and 40’s and is in dire need of replacement or rehabilitation. It will be necessary to replace 50,000 feet of sewer each year as required by the NCDENR collection system permit. The District constructed a new $10 million Filtration System which has significantly improved effluent water quality.

Ø O&M budget includes

1. Salary increase of 2.5% 2. A 4.5 % increase to Materials and Supplies (including fuel). 3. Medical Plan funding – no increase in MSD contribution. 4. GASB 45 (OPEB) funding of $265,700. 5. 1.12% increase in funding for North Carolina retirement cost.

Ø Average residential monthly bill will go up .68 cents from $27.81 to $28.49. Ø Residential Facilities Fee - No increase at $2,500. Ø Average bill for industrial user to go up 4.0% based upon the 20 year “parity” plan approved by the District Board.

!

67% Construction related

Metropolitan Sewerage District of Buncombe County BOARD ACTION ITEM BOARD MEETING DATE: June 11, 2014 SUBMITTED BY: Tom Hartye, P.E. - General Manager PREPARED BY: Ed Bradford, P.E. - Director of Engineering Darin Prosser, P.E. - Project Manager SUBJECT: Sanitary Sewer Rehabilitation Project: East State Street @ West Street,

MSD Project No. 2011115 BACKGROUND: This project is for the replacement of aged six-inch and eight-inch clay

sewer lines located in downtown Black Mountain. The lines are in poor structural condition, which has caused frequent maintenance issues.

This project is being coordinated with an NCDOT paving project on this

street. The NCDOT project is scheduled to begin later this summer, prior to the beginning of the 2014-15 school year (there is an Elementary School in close proximity to the project).

The MSD portion is comprised of 1,610 linear feet of 8-inch DIP.

The contract was advertised and three bids were received on Thursday May 22, 2014 at 2:00 PM as follows:

Contractor Bid Amount

1) Dillard Excavating Co. $788,815.00 2) Terry Brothers Const. Co., Inc. $480,950.00 3) Davis Grading, Inc. $403,640.00

The apparent low bidder is Davis Grading, Inc. with a bid amount of $403,640.00. Davis Grading has not had previous experience with MSD rehabilitation projects; therefore, staff checked multiple references. All references were highly positive, with no problems cited with the company’s performance. Staff is therefore comfortable that the Board award this contract to Davis Grading, Inc. Please refer to the attached documentation for further details, including the reference check.

FISCAL IMPACT: The FY14-15 construction budget for this project is $519,000.00. STAFF RECOMMENDATION: Staff recommends award of this contract to Davis Grading,

Inc. in the amount of $403,640.00, subject to review and approval by District Counsel.

Interoffice Memorandum TO: Tom Hartye, General Manager FROM: Ed Bradford, Director of Engineering Darin Prosser, Project Manager DATE: May 27, 2014 RE: East State Street @ West Street Sewer Replacement, MSD Project No. 2011115 The East State Street @ West Street Sewer Replacement project is located in Black Mountain along East State Street (Route 70). The project includes sewer line replacement in MSD sub-basin #25, from Broadway Street to Charlotte Street. Approximately 1,610 linear feet of 8-inch DIP sewer line will be installed to replace existing six-inch and eight-inch VCP lines. The existing pipes are in poor structural condition. Additionally, NCDOT plans to resurface East State Street in the Summer of 2014. The MSD project will replace the sewer before the NCDOT project begins. On May 22, 2014 three sealed bids were received at 2:00 pm. Results were as follows:

Contractor Bid Amount 1) Dillard Excavating Co. $788,815.00 2) Terry Brothers Construction Co., Inc. $480,950.00 3) Davis Grading, Inc. $403,640.00

The apparent low bidder is Davis Grading, Inc. with a bid amount of $403,640.00. The FY14-15 construction budget for this project is $519,000. This will be Davis Grading’s first project with MSD sewer rehabilitation projects, so references have been contacted. Davis Grading received excellent reviews regarding their performance history. Staff therefore recommends award of this contract to Davis Grading, Inc. contingent upon review and approval by District Counsel.

Memorandum To: Ed Bradford, Director of Engineering

CC: Darin Prosser, MSD Project Manager

From: F. Roger Watson, MSD Construction Manager

Date: May 27, 2104

Re: References – Davis Grading Inc. of Shelby, NC

I have checked references of Davis Grading Inc. of Shelby, NC (apparent low bidder on the E. State Street @ West Drive project) and all references contacted gave this company an excellent construction record and highly recommended them. Below are persons contacted with their response and recommendations:

Reference No. 1

David Hux – City of Shelby, NC Utilities Department, Asst. Utilities Director

Project: Westside Sewer Contract no. 1 – 25,000 LF of 15” sewer plus manholes, railroad bore and 4 roadway bores

Comments: A major gravity outfall line – Davis Grading did excellent work, completed job within budget and schedule. No problems were encountered during work; job went smoothly and very well. Contractor has done other projects for City of Shelby and all went well. Good Contractor, highly recommended.

Reference No. 2

Reid Hammet – Town of Forest City

Project: Horsehead Utilities Project – 6700 LF of 4” force main, 9900 LF of 12” DIP waterline and Sanitary Sewer Pump Station

Comments: Good Contractor, has done several projects for Town of Forest City, Davis Grading is a large company which works from Greensboro, Hickory, and other locations in NC & SC. Jobs with Forest City were done on time and within project schedule. Mr. Hammet highly recommended this contractor.

Reference No. 3

Jonathan Young – Town of Mooresville Engineer

Project: Reed Creek Force Main Relocation – 8500 LF of 24” sewer force main

Comments: One of best contractors he has worked with, job across golf course, was time sensitive, work was done quickly and efficiently, no complaints were received from property owners or public concerning contractor’s work, work included bore under railroad at 25’ to 30’ depth – bore was successful and no problems; cleanup of job was excellent. Great Contractor – highly recommended.

Reference No. 4

Eric Conner – NCDOT, Shelby Division Office; Shelby, NC

Project: NC 274 Widening – 1.3 miles of roadway widening , included grading, excavation, waterline replacement, sewer line replacement, storm drainage and concrete work

Comments: Work was satisfactory and met or exceeded NCDOT specifications and requirements. No problems were encountered. Contractor provided satisfactory and sufficient supervision and workers to complete project work scope.

Summary All references gave this contractor a very high recommendation and did not seem to have any reservations about rehiring them for future projects. Based on the above comments, Davis Grading Inc. of Shelby, NC seems to be well qualified to do work on MSD’s system and capable of doing the E. State Street @ West Street Project as proposed in MSD’s project plans and specifications. It is recommended that this contract be awarded to Davis Grading Inc. of Shelby, NC. F. Roger Watson, PE/PLS MSD Construction Manager

Metropolitan Sewerage District of Buncombe County BOARD ACTION ITEM BOARD MEETING DATE: June 11, 2014 SUBMITTED BY: Tom Hartye, P.E. - General Manager PREPARED BY: Ed Bradford, P.E. - Director of Engineering Hunter Carson, P.E. - Project Manager SUBJECT: Sanitary Sewer Rehabilitation Project: Mount Vernon Place Ph. 2, MSD

Project No. 2010122 BACKGROUND: This project is for the replacement of aged six-inch clay sewer lines

located in the North Asheville area. The lines are in poor structural condition, and have been subject to frequent maintenance calls.

This work is being coordinated with a City of Asheville water rehabilitation

project in this neighborhood. After the City water project is complete, MSD and the City will cost-share to pave affected streets. The paving work will restore pavement for a total of four MSD projects in this immediate neighborhood.

This project is comprised of 2,504 linear feet of 8-inch DIP and HDPE.

The contract was advertised and two bids were received on Thursday May 22, 2014. The project was therefore re-advertised and two bids were received on Friday May 30 at 11:00 am as follows:

Contractor Bid Amount

1) Dillard Excavating Co, Inc. $722,815.00 2) Terry Brothers Const. Co. $542,675.00

The apparent low bidder is Terry Brothers with a bid amount of $542,675.00. Terry Brothers has completed numerous projects for MSD, and has a satisfactory performance history. Please refer to the attached documentation for further details.

FISCAL IMPACT: The FY14-15 Engineer’s Estimate for the sewer rehabilitation portion is $640,000.00

The total construction budget is $809,000.00. The remaining amount is

budgeted for the paving portions for this project, which will be cost-shared with the City of Asheville.

STAFF RECOMMENDATION: Staff recommends award of this contract to Terry Brothers

Const. Co., Inc. in the amount of $542,675.00, subject to review and approval by District Counsel.

Interoffice Memorandum TO: Tom Hartye, General Manager FROM: Ed Bradford, Director of Engineering Hunter Carson, Project Engineer DATE: May 30, 2014 RE: Mount Vernon Place Phase 2 Sewer Replacement, MSD Project No. 2010122 The Mount Vernon Place Phase 2 Sewer Replacement project is located in north Asheville, just west of Merrimon Avenue and south of Beaver Lake. The project area is split between MSD sub-basins #4 and #42. Sewer lines will be replaced on Mount Vernon Circle and Colonial Place. Approximately 2,023 linear feet of 8-inch DIP and 481 linear feet of 8-inch HDPE sewer line (installed via dig & replace and pipe bursting, respectively) will replace existing 6-inch VCP lines. The existing pipes are in very poor condition and have experienced SSOs. On May 22, 2014, two sealed bids were received; however, with estimated construction expenditures in excess of $500,000, the project required a minimum of three bids to open. The project was re-advertised and bids were again received on May 30, 2014 at 11:00am. Two sealed bids were received and the results were as follows:

Contractor Bid Amount 1) Dillard Excavating Co, Inc. $722,815.00 2) Terry Brothers Const. Co. $542,675.00

The apparent low bidder is Terry Brothers Construction Company with a bid amount of $542,675.00. The FY14/15 project budget is $809,000.00; however, the budget includes roadway milling and resurfacing costs for this and other projects recently completed by MSD. The construction estimate for sewer replacement alone is $640,000.00, and is the basis for the bids shown above. The City of Asheville will be completing a neighborhood-wide waterline replacement project later this year, and has agreed to share costs of milling and resurfacing in mutually disturbed roadways. The additional funds budgeted will be used for roadway repairs on four MSD sewer replacement projects in this neighborhood: Mount Vernon Phase 1, Mount Vernon Phase 2, Merrimon Ave. @ Colonial Place, and Cambridge Road (completed by MSD System Services). Terry Brothers Construction Company has extensive experience with District rehabilitation and replacement projects, and has an excellent performance history. Staff recommends award of this contract to Terry Brothers Construction Company contingent upon review and approval by District legal counsel.

Metropolitan Sewerage District of Buncombe County Board Action Item Meeting Date: June 11, 2014

Subject: Consideration of Bids - Sodium Hypochlorite Contract Prepared by: Peter Weed; Director – Water Reclamation Facility Roger Edwards; Superintendent – Water Reclamation Facility Julie Willingham, CLGPO; Purchasing Supervisor Reviewed by: Tom Hartye, General Manager W. Scott Powell, CLGFO; Finance Director Billy Clarke, District Counsel Background: The Water Reclamation Facility is required to disinfect the effluent prior to discharge to the French Broad River. Liquid sodium hypochlorite is used for this purpose. Current contracted cost for sodium hypochlorite is $0.67/gallon, with an estimated expenditure for FY14 - based on 200,000 gallons usage - of $134,000.00. In May of 2014, new bids for Sodium Hypochlorite were requested from various vendors as a method of keeping costs in line, as costs have been known to fluctuate in previous years due to changes in fuel and manufacturing costs. The bid was based on an estimated usage for 2014-2015 of 200,000 gallons of Sodium Hypochlorite. Discussion: Pursuant to North Carolina Purchasing Statutes and MSD Procedures, on May 09, 2014, bids were emailed to five vendors and an advertisement was placed on the MSD web site. Four bids were received and the bid opening was held May 23, 2014. Specialty Chemical Company was the lowest bidder and agrees to hold their price firm for the total year contract irrespective of market changes. Specialty Chemical Company will be a new supplier to MSD. However, after reference and specification reviews and conversations with the vendor, MSD staff feels comfortable with both the quality of the chemicals and customer service. Fiscal Impact: This is a Unit Price Contract, without minimum or maximum quantities. Based on historical use, FY15 expenditures for Sodium Hypochlorite is anticipated to be $131,800.00, within the levels budgeted by the WRF. Staff Recommendation: Staff recommends that the Board award the contract for the supply of Sodium Hypochlorite to Specialty Chemical Company at a unit price of $0.659 per gallon.

Bid Tab:

Vendor

Price per Gallon

Extended Price based on 200,000 estimated gallons

Comments

Univar Spartanburg, SC

$ 0.735 $147,000.00 Price good for one year

Specialty Chemical, Cleveland, TN

$0.659 $131,800.00 Price good for one year

Water Guard, Wilson, NC $0.950 $190,000.00 Price good for one year

JCI Jones Charlotte, NC

$0.670 $134,000.00 Price good for one year

Metropolitan Sewerage District of Buncombe County Board Action Item Meeting Date: June 11, 2014

Subject: Consideration of Bids - Sodium Bisulfite Contract Prepared by: Peter Weed; Director – Water Reclamation Facility Roger Edwards; Superintendent – Water Reclamation Facility Julie Willingham, CLGPO; Purchasing Supervisor Reviewed by: Tom Hartye, PE; General Manager W. Scott Powell, CLGFO; Finance Director Billy Clarke; District Counsel Background: Following Chlorine Detention time/final disinfection, the Water Reclamation Facility is required to neutralize any remaining Chlorine in the water prior to discharge to the French Broad River. Sodium Bisulfite is used for this purpose. In May of 2014, new bids for Sodium Bisulfite were requested from various vendors as a method of keeping rising costs in line, as indicators showed that prices for this material had risen since the previous contract was awarded. These price increases are directly tied to cost of fuels, as well as general price increases in the chemical market over the past year. The bid was based on an estimated usage for 2014-2015 of 100,000 gallons of Sodium Bisulfite. Discussion: Pursuant to North Carolina Purchasing Statutes and MSD Procedures, on May 09, 2014, bids were emailed to four vendors and an advertisement was placed on the MSD web site. Two bids were received and the bid opening was held May 23, 2014. Southern Ionics was the lowest bidder and agrees to hold their price firm for the total year contract irrespective of market changes. Southern Ionics has been the supplier to MSD this past fiscal year and MSD staff feels comfortable with both the quality of the chemicals and the customer service supplied by Southern Ionics. Fiscal Impact: This is a Unit Price Contract, without minimum or maximum quantities. Based on the estimated gallons, 2014-2015 expenditures for Sodium Bisulfite is anticipated to be $114,000.00, within the levels budgeted by the WRF. Staff Recommendation: Staff recommends that the Board award the contract for the supply of Sodium Bisulfite to Southern Ionics at a unit price of $1.140 per gallon.

Bid Tab:

Vendor

Price per Gallon

Extended Price based on 100,000 estimated

gallons Comments

Southern Ionics West Point, MS

$1.140 $114,000.00 Price good for one year - Firm

Specialty Chemical Cleveland, TN

Non-Responsive

Brenntag Charlotte, NC

Non-Responsive

JCI Jones Charlotte, NC

$1.147 $114,700.00 Price good for one year - Firm

Metropolitan Sewerage District of Buncombe County BOARD ACTION ITEM BOARD MEETING DATE: 6/11/14 SUBMITTED BY: Tom Hartye, P.E. - General Manager PREPARED BY: Mike Stamey, P.E. - Director of System Services Construction Scott Powell, CLGFO – Director of Finance SUBJECT: Report on MSD Paving Agreement with City of Asheville

Project Number 2002101 BACKGROUND: This agreement is for asphalt and concrete (patching) restoration of public roads

and sidewalks within the Asheville City Limits which have a size of approximately 300 SF or less. This restoration work is the result of District in-house maintenance and rehabilitation activities on the sewer system.

Prior to FY 12, all pavement and sidewalk restoration after MSD work was

performed by contractors. This process worked well, with the exception of administrative & permitting issues concerning City of Asheville streets. With these concerns in mind, the City and the District entered an agreement on July 1, 2011 wherein the District would pay the City an annual contribution to a Paving Enterprise Fund and all pavement restoration would be performed by the City’s in-house paving crews. This agreement was executed between MSD and the City for both the FY 12 and FY 13 years. During these two contract years, the City crews provided excellent service relating to asphalt and concrete patching for the subject roadways, especially for the cuts of approximately 300 SF or less. Asphalt restoration for projects larger than 300 SF however was found to be very costly and difficult to complete by City crews in a timely manner due to workload. As such, MSD and the City worked together in the spring of 2013 to facilitate an annually renewing agreement which provided greater efficiency and economic feasibility for both sides. The details of the agreement include City crews performing asphalt and concrete patching restoration work for MSD within City Right of Ways for areas of approximately 300 SF or less. In areas greater than 300 SF and for asphalt overlays, MSD contracts out the pavement restoration. For this agreement the City provides monthly reports to MSD and MSD makes monthly payments for completed restoration work. Additionally, MSD is not required to pay permit fees. This annually renewing agreement was approved by the MSD Board at the June 12, 2013 meeting. For FY 15, the District’s monetary contribution for this agreement is $425,123.55. This amount is based upon usage throughout this past year with a total patching area of 20,000 SF.

The District must still contract out for paving overlays and patches in the City

which exceed approximately 300 SF and for all paving work for the remaining areas outside the Asheville City Limits / Right of Ways.

FISCAL IMPACT: The FY 15 budget estimate for this item was $450,000.00. STAFF RECOMMENDATION: None. Information Only

Metropolitan Sewerage District of Buncombe County Board Action Item BOARD MEETING DATE: June 11, 2014 SUBMITTED BY: Tom Hartye, P.E., General Manager PREPARED BY: Kevin Johnson REVIEWED BY: Ed Bradford, P.E., Engineering Director SUBJECT: Acceptance of Developer Constructed Sewer System for the

Biltmore Lake Block “J” Sewer Extension Project. BACKGROUND: This project is located inside the District boundary off Reeves Cove

Road in Buncombe County. The developer of the project is Lee Thomason of Biltmore Farms.

The project included extending approximately 3,990 linear feet of 8-

inch public gravity sewer to serve the thirty-two (32) unit residential development.

A wastewater allocation was issued in the amount of 9600 GPD for

the project. The estimated cost of the sewer construction is $243,330.00.

All MSD requirements have been met. STAFF RECOMMENDATION: Staff recommends acceptance of this developer

constructed sewer system.

Metropolitan Sewerage District of Buncombe County Board Action Item BOARD MEETING DATE: June 11, 2014 SUBMITTED BY: Tom Hartye, P.E., General Manager PREPARED BY: Kevin Johnson REVIEWED BY: Ed Bradford, P.E., Engineering Director SUBJECT: Acceptance of Developer Constructed Sewer System for the Camp

Dorothy Walls Sewer Extension Project. BACKGROUND: This project is located inside the District boundary off North Fork

Road in Black Mountain. The developer of the project is Bishop George W. Walker of Camp Dorothy Walls Conference and Retreat Center.

The project included extending approximately 545 linear feet of 8-

inch public gravity sewer to serve the commercial development. A wastewater allocation was issued in the amount of 12000 GPD for




Metropolitan Sewerage District of Buncombe County Board Action Item BOARD MEETING DATE: June 11, 2014 SUBMITTED BY: Tom Hartye, P.E., General Manager PREPARED BY: Kevin Johnson REVIEWED BY: Ed Bradford, P.E., Engineering Director SUBJECT: Acceptance of Developer Constructed Sewer System for the Willow

Creek Phase 3 Sewer Extension Project. BACKGROUND: This project is located inside the District boundary on Kirby Road in

the City of Asheville. The developer of the project is Dennis Hulsing. The project included extending approximately 565 linear feet of 8-

inch public gravity sewer to serve the twenty (20) unit residential development.

A wastewater allocation was issued in the amount of 6000 GPD for




Metropolitan Sewerage District of Buncombe County BOARD INFORMATIONAL ITEM

Meeting Date: June 11, 2014

Submitted By: Thomas E. Hartye, PE., General Manager

Prepared By: W. Scott Powell, CLGFO, Director of Finance Cheryl Rice, Accounting Manager

Subject: Cash Commitment/Investment Report-Month Ended April 30, 2014

Background Each month, staff presents to the Board an investment report for all monies in bank accounts and specific investment instruments. The total investments as of April 30, 2014 were $28,141,918. The detailed listing of accounts is available upon request. The average rate of return for all investments is 0.553%. These investments comply with North Carolina General Statutes, Board written investment policies, and the District’s Bond Order. The attached investment report represents cash and cash equivalents as of April 30, 2014 do not reflect contractual commitments or encumbrances against said funds. Shown below are the total investments as of April 30, 2014 reduced by contractual commitments, bond funds, and District reserve funds. The balance available for future capital outlay is $5,194,065.

Staff Recommendation None. Information Only.

Total Cash & Investments as of 04/30/2014 28,141,918 Less:

Budgeted Commitments (Required to pay remainingFY14 budgeted expenditures from unrestricted cash)

Construction Funds (7,764,422) Operations & Maintenance Fund (3,683,436)

(11,447,858) Bond Restricted Funds

Bond Service (Funds held by trustee):Funds in Principal & Interest Accounts (6,673) Remaining Principal & Interest Due (6,537,320)

(6,543,993) District Reserve Funds

Fleet Replacement (306,400) WWTP Replacement (483,981) Maintenance Reserve (913,156)

(1,703,537) District Insurance Funds

General Liability (407,010) Worker's Compensation (358,794) Post-Retirement Benefit (1,248,688) Self-Funded Employee Medical (1,237,973)

(3,252,465) Designated for Capital Outlay 5,194,065

Action Taken Motion by: to Approve Disapprove Second by: Table Send to Committee Other: Follow-up required: Person responsible: Deadline:

Operating Gov't Advantage NCCMT Certificate of Cash Gov't AgenciesChecking Accounts Money Market (Money Market) Deposit Reserve & Treasuries Total

Held with Bond Trustee -$ -$ 4,143$ -$ 2,531$ -$ 6,674$ Held by MSD 419,464 46,658 14,512,031 13,157,091 - - 28,135,244

419,464$ 46,658$ 14,516,174$ 13,157,091$ 2,531$ -$ 28,141,918$

Metropolitan Sewerage District of Buncombe CountyInvestment Portfolio

Board Meeting:

June 11, 2014 Subject:

Cash Com

mitm

ent/Investment Report-M

onth Ended April 30, 2014 Page -2-

Investment Policy Asset Allocation Maximum Percent Actual PercentU.S. Government Treasuries, Agencies and Instrumentalities 100% 0.01% No significant changes in the investment portfolio as to makeup or total amount.Bankers’ Acceptances 20% 0.00%Certificates of Deposit 100% 46.75% The District 's YTM of .54% is exceeding the YTM benchmarks of the 6 month T-BillNorth Carolina Capital Management Trust 100% 51.58% and NCCMT Cash Portfolio.Checking Accounts: 100% All funds invested in CD's, operating checking accounts, Gov't Advantage money market Operating Checking Accounts 1.49% are fully collaterlized with the State Treasurer. Gov't Advantage Money Market 0.17%

Board Meeting: June 11, 2014 Subject: Cash Commitment/Investment Report-Month Ended April 30, 2014 Page -3-

METROPOLITAN SEWERAGE DISTRICT INVESTMENT MANAGERS' REPORT

At April 30, 2014

Summary of Asset TransactionsOriginal Interest

Cost Market ReceivableBeginning Balance 25,530,210$ 25,530,210$ 384,843$ Capital Contributed (Withdrawn) 712,553 712,553 Realized Income 868 868 Unrealized/Accrued Income - 11,186 Ending Balance 26,243,631$ 26,243,631$ 396,029$

Value and Income by MaturityOriginal Cost Income

Cash Equivalents <91 Days 13,086,539$ 6,011$ Securities/CD's 91 to 365 Days 13,157,091 6,043$ Securities/CD's > 1 Year - -$

26,243,631$ 12,054$

Month End Portfolio Information

Weighted Average Maturity 191Yield to Maturity 0.54%6 Month T-Bill Secondary Market 0.05%NCCMT Cash Portfolio 0.01%


METROPOLITAN SEWERAGE DISTRICT ANALYSIS OF CASH RECEIPTS

As of April 30, 2014

Monthly Cash Receipts Analysis: Monthly domestic sewer revenue is considered reasonable based on timing of cash receipts in their

respective fiscal periods. Monthly industrial sewer revenue is trending below budgeted expectations. Due to the unpredictable nature of facility and tap fee revenue, staff considers facility and tap fee revenue

reasonable.

YTD Actual Revenue Analysis: YTD domestic sewer revenue is considered reasonable based on historical trends. YTD industrial sewer revenue is trending below budgeted expectations. Due to the unpredictable nature of facility and tap fee revenue, staff considers facility and tap fee revenue

reasonable.


METROPOLITAN SEWERAGE DISTRICT ANALYSIS OF EXPENDITURES

As of April 30, 2014

Monthly Expenditure Analysis: Monthly O&M expenditures are considered reasonable based on historical trends and timing of

expenditures in the current year. Due to the nature of the variable rate bond market, monthly expenditures can vary year to year. Based on

current variable interest rates, monthly debt service expenditures are considered reasonable. Due to nature and timing of capital projects, monthly expenditures can vary from year to year. Based on

the current outstanding capital projects, monthly capital project expenditures are considered reasonable.

YTD Expenditure Analysis: YTD O&M expenditures are considered reasonable based on historical trends. Due to the nature of the variable rate bond market, YTD expenditures can vary year to year. Based on

current variable interest rates, YTD debt service expenditures are considered reasonable. Due to nature and timing of capital projects, YTD expenditures can vary from year to year. Based on the

current outstanding capital projects, YTD capital project expenditures are considered reasonable.


METROPOLITAN SEWERAGE DISTRICT VARIABLE DEBT SERVICE REPORT

As of May 31, 2014

Series 2008A: Savings to date on the Series 2008A Synthetic Fixed Rate Bonds is $3,367,384 as compared to 4/1 fixed

rate of 4.85%.

Assuming that the rate on the Series 2008A Bonds continues at the current all-in rate of 4.0475%, MSD will achieve cash savings of $4,730,000 over the life of the bonds.

MSD would pay $4,349,046 to terminate the existing Bank of America Swap Agreement.

Meeting Date: June 11, 2014

Submitted By: Thomas E. Hartye, PE., General Manager

Prepared By: W. Scott Powell, CLGFO, Director of Finance

Subject: Consideration of Resolution adopting the Proposed FY2015 Final Budget for and Schedule of Sewer Rates & Fees Background The District Budget process must comply with North Carolina General Statues and the MSD Revenue Bond Order. The Bond order requires that the District adopt its final budget on or before June 15 of each year. The North Carolina General Statutes required that an annual balanced budget ordinance, based upon expected revenues, along with a budget message, to be presented to the governing board no later than June 1 of each year. Please refer to the following link FY2015 Proposed Final Budget. The Budget Message can be found on pages 1-7 (pdf pgs. 7-13) and the Budget Summary can be found on page 29 (pdf pg. 36). Staff/Committee Recommendations The Finance Committee/Staff recommends to the Board that the proposed FY2015 Final Budget, FY2015 Budget Resolution, and FY2015 Schedule of Sewer Rates and Fees be considered and adopted.

Metropolitan Sewerage District of Buncombe County BOARD ACTION ITEM

Action Taken Motion by: to Approve Disapprove Second by: Table Send to Committee Other: Follow-up required: Person responsible: Deadline:

http://www.msdbc.org/documents/financial/budgets/FY2015ProposedFinalBudget.pdf


Flow of Funds Chart

FY2014-2015 Final Budget & Schedule of Sewer Rates & Fees

Trustee Funds

Income Sources

Expenditures

Flow of Funding Flow of Funding if required for emergency repairs or maintenance

Priority of expenditures per Bond Order1. Current Expenditures2. Debt Service3. Capital Reserve4. Any Lawful Purpose

User Charges, Rental Income & Misc.

Revenue FundO&M paid from Revenue Fund

Capital Reserve Fund

Tap FeesFacility Fees

Grants

General Fund

ConstructionFund

Wastewater Treatment Plant

Fleet

Replacement Funds

Revenue Bond FundSinking Fund Account

Capitalized Interest AccountInterest AccountPrincipal Account

Redemption AccountParity Reserve Account

Employee Contributions Sale of Surplus Property

Medical & Dental

Worker’s Comp

General Liability

Insurance Funds

Post Retirement


Resolution – Budget & Sewer Use Charges

RESOLUTION ADOPTING FINAL BUDGET AND SEWER USE CHARGES FOR THE

METROPOLITAN SEWERAGE DISTRICT OF BUNCOMBE COUNTY, NORTH CAROLINA

FOR THE FISCAL YEAR July 1, 2014 THRU June 30, 2015

WHEREAS, the Board of Directors has reviewed the Operations and Maintenance, Bond, Reserves, and Construction Expenditures of the District and the sources of revenue and allocations (uses) of expenditures for the 2014-2015 fiscal year; and

NOW, THEREFORE, BE IT RESOLVED:

1. The following amounts are hereby appropriated in the Revenue Fund for the Operations and Maintenance of the District and for transfers to the debt service and general funds for the fiscal year beginning July 1, 2014 and ending June 30, 2015:

Operating and Maintenance Expenses $ 12,063,220

Transfer to Insurance Accounts $ 2,821,562

Transfer to Fleet Replacement Reserve $ 400,000

Transfer to Wastewater Treatment Plant Reserve $ 100,000

Subtotal O&M $ 15,384,782

Transfer to Debt Service Fund $ 10,389,488

Transfer to General Fund $ 9,265,885

$ 35,040,155

It is estimated that the following revenues will be available in the Revenue Fund for the fiscal year beginning July 1, 2014 and ending June 30, 2015:

Domestic User Fees $ 28,445,115

Industrial User Fees $ 1,835,438

Billing and Collection Fees $ 725,702

Investment Interest $ 336,745

Reimbursement for Debt Service from COA $ 37,000

Rental Income $ 68,742

Appropriated Net Position $ 3,591,413

$ 35,040,155




2. The following amounts are hereby appropriated in the General Fund for the transfers to the construction fund for the fiscal year beginning July 1, 2014 and ending June 30, 2015:

Transfer into Construction $ 12,046,060

It is estimated that the following revenues will be available in the General Fund for the fiscal year beginning July 1, 2014 and ending June 30, 2015:

Facility and Tap Fees $ 1,355,000

Investment Income $ 5,000

Transfer from Revenue Fund $ 9,265,885


$ 12,046,060

3. The following amounts are hereby appropriated in the Construction Fund for Capital

Improvement Plan expenditures for the fiscal year beginning July 1, 2014 and ending June 30, 2015.

Capital Improvements Projects $ 22,760,555

It is estimated that the following revenues will be available to the Construction Fund for the Fiscal year beginning July 1, 2014 and ending June 30, 2015.


Transfer from General Fund $ 12,046,060


$ 22,760,555

4. The following amounts are presented as the financial plan for the Internal Service Funds used to provide insurance services. Estimated operating expenditures for the fiscal year beginning July 1, 2014 and ending June 30, 2015 are:

Operating Expenditures $ 3,463,138




It is estimated that the following revenues will be available in the Insurance Fund for the fiscal year beginning July 1, 2014 and ending June 30, 2015:

Transfer in from the Revenue Fund $ 2,821,562


Employee/Retirees Medical Contributions $ 417,800

Appropriated Net Position $ 208,276

$ 3,463,138

5. The following amounts are presented as the Financial Plan in the Fleet Replacement Fund for

the Internal Service Fund serving as capital equipment expenditures for the fiscal year beginning July 1, 2014 and ending June 30, 2015 are estimated as follows:

Capital Equipment $ 269,550

It is estimated that the following revenues will be available in the Fleet Replacement Fund for the fiscal year beginning July 1, 2014 and ending June 30, 2015:

Transfer in from the Revenue Fund $ 400,000

Sale of Surplus Property $ 35,803


Contributions to Net Position $ (170,764)

$ 269,550

6. The following amounts are presented as the Financial Plan in the Wastewater Treatment Plant

Replacement Fund for the internal service fund designated as expenditures for the fiscal year beginning July 1, 2014 and ending June 30, 2015 are estimated as follows:

Capital Equipment $ 227,500

It is estimated that the following revenues will be available in the Wastewater Treatment Plant Replacement Fund for the fiscal year beginning July 1, 2014 and ending June 30, 2015:

Transfer in from the Revenue Fund $ 100,000


Appropriated Net Position $ 123,091

$ 227,500




7. The following amounts are hereby appropriated in the Debt Service Fund for principal and interest payments for the fiscal year beginning July 1, 2014 and ending June 30, 2015:

Debt Service $ 10,389,488

It is estimated that the following revenues will be available in the Debt Service Fund for the fiscal year beginning July 1, 2014 and ending June 30, 2015:

Transfer in from the Revenue Fund $ 10,389,488

Investment Income $ 50

Contributions to Net Position $ (50)

$ 10,389,488

8. That the Board of the Metropolitan Sewerage District does hereby approve an increase in the Budgets to the amount necessary to reflect any contributions to the Debt Service Reserve Fund or Capital Reserve Fund as determined by the Bond Trustee to be necessary to comply with covenants in the Bond Order.

9. The General Manager is hereby authorized to transfer appropriations as contained herein

under the following conditions:

a. He may transfer amounts without limitation between departments in a fund. b. He may transfer any amounts within debt service and reserve funds designated as

excess by the Trustee into another fund.

10. That the attached schedule of fees and charges be adopted as effective July 1, 2014.

11. That this resolution shall be entered in the minutes of the District and within five (5) days

after its adoption, copies thereof are ordered to be filed with the Finance and Budget Officer and Secretary of the Board as required by G.S. 159-13 (d).

Adopted this 11th day of June, 2014

M. Jerry VeHaun, Chairman Metropolitan Sewerage District of Buncombe County, North Carolina

Attest:

Jackie Bryson

Secretary/Treasurer



Schedule of Rates & Fees – FY2015

ADOPTED FY14 RATE

PROPOSED FY15 RATE

Collection Treatment ChargeResidential & Commercial Volume Charges (per CCF) Inside 4.08$ 4.18$ Industrial Volume Charges (per CCF) Inside 3.195$ 3.439$ Industrial Surcharge for BOD (per lb., BOD >220 mg/l) Inside 0.341$ 0.334$ Industrial Surcharge for TSS (per lb., TSS >220 mg/l) Inside 0.267$ 0.264$

Residential & Commercial Volume Charges (per CCF) Outside 4.09$ 4.19$ Industrial Volume Charges (per CCF) Outside 3.205$ 3.449$ Industrial Surcharge for BOD (per lb., BOD >220 mg/l) Outside 0.341$ 0.334$ Industrial Surcharge for TSS (per lb., TSS >220 mg/l) Outside 0.267$ 0.264$

Base Meter/Maintenance Charge & Billing Fee5/8" 6.28$ 6.44$ 3/4" 9.15$ 9.38$ 1" 16.22$ 16.63$ 1 1/2" 37.15$ 38.08$ 2" 65.71$ 67.35$ 3" 145.73$ 149.37$ 4" 260.04$ 266.54$ 6" 585.79$ 600.43$ 8" 1,040.15$ 1,066.15$ 10" 1,628.80$ 1,669.52$ Billing Fee (per bill) 2.25$ 2.29$

Sewer Facility FeesResidential

Per Unit (non-mobile home) 2,500$ 2,500.00$ Mobile Home 1,740$ 1,740.00$ Affordable Housing 670$ 670.00$

Nonresidential (modifiable per economic development waiver)5/8" 2,500$ 2,500.00$ 3/4" 2,830$ 2,830.00$ 1" 5,560$ 5,560.00$ 1 1/2" 11,350$ 11,350.00$ 2" 20,000$ 20,000.00$ 3" 45,000$ 45,000.00$ 4" 87,500$ 87,500.00$ 6" 225,400$ 225,400.00$ 8" 237,500$ 237,500.00$ Additions < 1,400 GPD 870$ 870.00$

Additions over 1,400 GPD Based on flow rate

& meter size Based on flow

rate & meter size



Schedule of Rates & Fees - FY2015


ADOPTED FY14 RATE

PROPOSED FY15 RATE

Sewer Tap FeesTap installed by MSD 650$ 650.00$ Additional Charge for Pavement Disturbance 2,200$ 2,200.00$ Additional Charge for Boring N/A N/ARefund if Boring avoids pavement disturbance (1,300)$ (1,300.00)$ Inspection Fee for Developer-Installed Tap 140$ 140.00$

Manhole Installation/ReplacementCost per foot 250$ 250.00$ Pavement replacement (if required) 1,800$ 1,800.00$

Other FeesAllocation Fee 170$ 170.00$ Non-Discharge Permit 200$ 200.00$ Plan Review Fee 450$ 450.00$ Plan re-review Fee 350$ 350.00$ Final Inspection 350$ 350.00$ Pump Station Acceptance Fee Note 1 Note 1 Note 1--See policy for details of computation of O&M and equipment replacement costs for upcoming 20 years; 50% discount for affordable housing

Bulk ChargesVolume Charge for Septic Haulers (per 1000 Gal.) 45.00$ 45.00$ Biochemical Oxygen Demand >220 mg/l (per lb.) 0.341$ 0.334$ Total Suspended Solids >220 mg/l (per lb.) 0.267$ 0.264$

Returned Check ChargeReturned Check (per event) 25.00$ 25.00$ Dishonored Draft (per event) 25.00$ 25.00$

Copy/Printing Fees/Miscellaneous (each)8x11 first print of standard GIS inquiry 1.00$ 1.00$ 8x14 first print of standard GIS inquiry 1.00$ 1.00$ 11x17 first print of standard GIS inquiry 2.00$ 2.00$ 24x36 first print of standard GIS inquiry 7.00$ 7.00$ 34x44 first print of standard GIS inquiry 12.00$ 12.00$ 36x48 first print of standard GIS inquiry 14.00$ 14.00$ 8x11 or 8x14 copies after first print 0.11$ 0.11$ 11x17 copies after first print 0.20$ 0.20$ 24x36 copies after first print 0.94$ 0.94$ 34x44 copies after first print 1.76$ 1.76$ 36x48 copies after first print 2.03$ 2.03$ Foam Core mounting per sq. foot 3.00$ 3.00$ Data CD 30.00$ 30.00$ Shipping for CD 5.00$ 5.00$ Permit Decals for Septic Haulers 50.00$ 50.00$

STATUS REPORTS

PROJECT NAMEESTIMATED FOOTAGE

ESTIMATED PROJECT DATES WO# CREW COMPLETION DATE

ACTUAL FOOTAGE Notes

Craven Strreet Improvements (P/N 2013071) 300 7/1/13-8/30/13 434914 667 8/14/2013 306 complete

90 Asheland Ave - Pipe Ream/Burst 118 8/29/2013 456371 631 8/29/2013 118 complete

Melody Lane 220 8/15/13 - 9/13/13 433549 667 8/30/2013 560 complete

Melody Lane Addition 25 9/10/2013 450458 667 9/10/2013 28 complete

41 Walnut Lane (Woodfin) 1260 5/27/13 - 8/30/13 441589 631 9/27/2013 1189 complete

View Street at Montreat Road (P/N 2013051) 461 10/8/13-10/31/13 400926 667 10/7/2013 463 complete

Elk Mtn Scenic Hwy @ Edgedale*(P/N 2010101) 785 10/7/13-11/7/13 456298/450460 667 10/23/2013 638 completeRoberts Street at Haywood Rd* (P/N 20100980) 200 10/16/13 - 11/16/13 470501 631 10/22/2013 210 complete

Gay Street (P/N 2013077) 327 10/7/13 - 11/4/13 433544 631 11/6/2013 335 complete

Memorial Park Drive 963 10/24/13 - 12/1/13 433530 667 11/22/2013 1004 complete

Daniel Road Phase II (14) 568 11/4/13 - 12/1/13 456760 631 12/3/2013 574 complete

Memorial Park Drive Phase 2 480 11/25/13 - 12/5/13 456768 667 12/20/2013 453 complete

Central Avenue SanitarySewer Replacement* 675 12/3/13 - 1/1/14 448995 631 1/2/2014 692 complete

Sweeten Creek Industrial Park Replacement 45 1/14/14 - 1/15/14 470611/457019 632 1/15/2014 50 complete

Buckner Road 600 12/23/13 - 2/3/14 400919 667 1/31/2013 990 complete

Livinston - AB Tech 529 1/2/14 - 2/3/14 456309 631 1/28/2014 561 complete

Dew Waite Dr 500 2/4/14 - 2/28/14 470610 667 2/28/2014 620 complete

Rash Road* (P/N 2010095) 550 2/4/14 - 2/28/14 456302 631 3/19/2014 566 complete1245 Tunnel Road 75 3/21/14 - 3/25/14 212631 632 3/25/2014 70 completeBroadview Drive 265 3/17/14 - 3/25/14 456312 631 3/26/2014 276 complete101 E. Skyview Circle 260 3/27/2014 - 3/31/14 456310 631 3/31/2014 268 complete

Ridgeway Dr. (MSD P/N 2012136) 595 3/10/14 - 4/8/14 456296 667 3/31/2014 645 complete

382 Lakeshore Drive 240 4/1/2014 - 4/2/14 456311 631 4/3/2014 248 complete

Lower Grovestone Quarrry 1700 4/3/14 - 5/3/14 213445 631 4/16/2014 1467 complete

Middle Grovestone Quarry (842 Old US 70 Hwy) 348 4/17/14 - 5/1/14 456316 631 4/22/2014 754 complete

Upper Grovestone Quarry 1000 4/23/14 - 5/2/14 213459 631 5/2/2014 955 complete

80 Lake Eden Rd 100 5/19/2014 214905 631 5/19/2014 102 complete

Lake Eden Road @ Tennoca Drive (At Quarry) 1750 5/5/14 - 6/5/14 214388 631 5/29/2014 1898 complete

Valle Vista Drive 1700 4/9/14 - 6/5/14 470605 667 6/2/2014 1635Sewer Work Complete - will be contracting out the pavement restoration

Westwood Place 480 6/6/14 - 7/10/14 433546 667 construction schrduled to begin June 12, 2014. Shiloh Road (P/N 2012137) 369 6/6/14 - 6/20/14 456294 631 ready for construction

995 West Chapel Rd 100 6/23/14 - 6/25/14 211782 631 ready for construction

FY 13-14 ProjectsMSD System Services In-House Construction

CAPITAL IMPROVEMENT PROGRAM STATUS REPORT SUMMARY June 4, 2014

PROJECT CONTRACTOR AWARD NOTICE TO ESTIMATED *CONTRACT *COMPLETION COMMENTS

DATE PROCEED COMPLETION AMOUNT STATUS (WORK)

DATE

BROADVIEW AVENUE TBD TBD TBD TBD TBD 0% Project is scheduled to bid on June 26th.

BROOKCLIFF DRIVE (PRP 59001)

Buckeye

Construction 10/16/2013 11/4/2013 5/16/2014 $360,132.50 100% Project complete and in close out.

EAST STATE STREET @ WEST STREET TBD TBD TBD TBD TBD 0%

Project was bid on May 22nd. Davis Grading, Inc. is the apparent low bidder.

Project will be presented at the June 11th board meeting.

FOREST RIDGE ROAD

Dillard

Excavating

Company 2/19/2014 3/10/2014 7/30/2014 $588,115.00 68% Mainline has been installed to MH #13.

INDIANA AVENUE

Moorhead

Construction 3/19/2014 4/1/2014 7/30/2014 $413,313.20 51% Mainline has been installed to MH #8.

MACON AVENUE @ SUNSET PARKWAY Terry Brothers 1/15/2014 3/1/2014 6/29/2014 $757,688.00 20%

Mainline construction has progressed to Bond Street. Pipe bursting has begun

and project is progressing well.

MERRIMON AVENUE @ STRATFORD ROAD Terry Brothers 9/18/2013 12/16/2013 8/31/2014 $885,849.00 20%

Rock bore at Elkwood Ave. has been difficult due to hard rock conditions, and

will go to hand-mining to complete. Remainder of project cannot be completed

until after bore is finished, due to flat grades.

MOUNT VERNON PLACE, PHASE 2 TBD TBD TBD TBD TBD 0%

Project was scheduled to bid on May 22nd. Only 2 bids were received; project

was re-bid on May 30th. Terry Brothers Construction Company is the

apparent low bidder. Project will be presented at the June 11th board meeting.

OLD US 70 @ GROVEMONT AVENUE

Buckeye

Construction 10/16/2013 11/18/2013 6/15/2014 $729,740.90 95%

All mainline construction is complete. Clean up and some concrete work yet

to be done.

SYCAMORE TERRACE (PRP 34012) Terry Brothers 1/15/2014 2/20/2014 6/20/2014 $638,350.00 85%

All mainline construction is complete. Contractor is working on clean up and

restoration. Final paving is yet to be done.

WRF - ELECTRICAL IMPROVEMENTS Haynes Electric 8/15/2012 9/10/2012 3/28/2014 $1,061,900.00 99% Final commissioning underway. Completion expected June 2014.

WRF - SLIDE GATE REPLACEMENT

NHM

Constructors 9/18/2013 10/7/2013 7/15/2014 $288,924.00 55%

Project progressing slowly due to difficult conditions in the existing channels.

By 6/6/14, 22 of 31 gates will have been replaced. Two gates will require

manufacturing changes due to conditions unknown at the time of design.

*Updated to reflect approved Change Orders and Time Extensions

Project NameProject

Number

Work

LocationUnits LF

Pre-Construction

Conference DateComments

N. Bear Creek Road Subdivision 2005137 Asheville 20 127 7/11/2006 Complete - Waiting on final documents

Burk Street Cottages 2012115 Asheville 27 631 10/24/2013 Complete - Waiting on final documents

Rock Hill Road Subdivision 2005153 Asheville 2 277 8/7/2006 Complete - Waiting on final documents

Black Mtn Annex: Avena Rd. 1999026 Black Mtn. 24 4,300 8/19/2010 Complete - Waiting on final documents

Black Mtn Annex: McCoy Cove 1992174 Black Mtn. 24 2,067 8/19/2010 Complete - Waiting on final documents

Black Mtn Annex: Blue Ridge Rd. 1992171 Black Mtn. 24 2,560 8/19/2010 Complete-Waiting on final documents

Haywood Village 2007172 Asheville 55 749 7/15/2008 New owner developer - will resume soon

Momentum Health Adventure 2008097 Asheville Comm. 184 8/19/2009 New ownership - project currently inactive

North Point Baptist Church 2008105 Weaverville Comm. 723 5/20/2009 Complete - Waiting on final documents

AVL Technologies 2010018 Woodfin Comm. 133 5/21/2010 Complete-Waiting on final documents

UNC-A New Residence Hall 2011047 Asheville 304 404 8/29/2011 Complete-Waiting on final documents

Cottonwood Townhomes 2009110 Black Mtn. 8 580 10/20/2009 Complete-Waiting on final documents

Goldmont St 2012087 Black Mtn. 6 91 1/11/2013 Complete-Waiting on final documents

Ramble at Parkway 2013100 Biltmore Forest TBD 335 7/26/2013 Complete-Waiting on final documents

Eargle Sewer Extension 2011077 Asheville 2 45 9/4/2013 Complete-Waiting on final documents

Carolina Truck and Body (Cooper) 2012075 Asheville Comm. 298 10/30/2012 Complete-Waiting on final documents

Sardis Road (COA) Annexation 2009037 Asheville N/A 6,981 4/2/2012 Complete-Waiting on revised ROW items

Ardmion Park 2011107 Asheville 5 208 4/16/2013 Complete-Waiting on final documents

Central Ave 2012065 Asheville 6 305 9/26/2013 Complete - Waiting on final documents

Asheville Market (Relocation) 2012139 Asheville Comm. 280 9/18/2013 Complete - Waiting on final documents

Westover Relocation 2013132 Asheville 1 87 11/20/2013 Complete - Waiting on final documents

Brookgreen Phase 1D-Kenai Dr. 2013076 Woodfin 3 370 3/14/2014 Complete - Waiting on final documents

Hamburg Mountain Phase 3 2004086 Weaverville 13 844 11/10/2005 Complete - Waiting on final documents

Pinebrook Farms Relocation 2013148 Weaverville N/A 178 12/19/2013 Complete - Waiting on final documents

Village at Bradley Branch - Ph. III 2008076 Asheville 44 783 8/8/2008 Complete - Waiting on final documents

Waynesville Ave (Pittman) 2013046 Asheville 15 332 5/23/2013 Complete-Waiting on final documents

Eagle's Landing 2010015 Asheville 25 472 10/22/2013 Complete-Waiting on final documents

Gorilla Carwash - Weaverville 2013109 Weaverville Comm. 236 11/15/2013 Complete-Waiting on final documents

Ridgefield Business Park 2004188 Asheville 18 758 2/16/2005 Complete-Waiting on final documents

Planning & Development Project Status Report

June 11, 2014

Page 1 of 2

Project NameProject

Number

Work

LocationUnits LF

Pre-Construction

Conference DateComments

Planning & Development Project Status Report

June 11, 2014

The Settings (6 Acre Outparcel) 2004192 Black Mountain 21 623 3/15/2006 Ready for final inspection

Waightstill Mountain PH-8 2006277 Arden 66 3,387 7/26/2007 testing / in foreclosure

Scenic View 2006194 Asheville 48 534 11/15/2006 Ready for final inspection

Ingles 2007214 Black Mtn. Comm. 594 3/4/2008 Ready for final inspection

Bartram's Walk 2007065 Asheville 100 10,077 7/28/2008 Punchlist pending - in bankruptcy

Morgan Property 2008007 Candler 10 1,721 8/11/2008 Pre-con held, ready for construction

Canoe Landing 2007137 Woodfin 4 303 5/12/2008 Ready for construction

Central Valley 2006166 Black Mtn 12 472 8/8/2007 Punchlist pending

CVS-Acton Circle 2005163 Asheville 4 557 5/3/2006 Ready for final inspection

Bostic Place Sewer Relocation 2005102 Asheville 3 88 8/25/2005 Ready for final inspection

Kyfields 2003100 Weaverville 35 1,118 5/10/2004 Ready for final inspection

Reems Creek Cottages 2013066 Weaverville 17 483 11/15/2013 Under Construction

Avalon 2013114 Asheville 192 1,343 6/2/2014 Pre-con held, ready for construction

Thoms Estate 3B & 4 2013052 Asheville 35 4,690 7/26/2013 Installing/Testing (75% Complete)

Carmel Ridge Apartments 2013018 Leicester 80 1,162 10/11/2013 Under Construction

Palisades Apartments 2013024 Asheville 224 1,423 9/4/2013 Ready for testing

Crest Mountain Phase 3B 2013041 Woodfin 69 1,329 10/15/2013 Under Construction

Ingles - Smokey Park Highway 2013135 Asheville Comm. 1,289 4/11/2014 Under Construction

The Aventine 2011015 Biltmore Forest 300 3,238 10/14/2013 Under constr./some air testing complete

Echo Hills Cottages 2013121 Asheville 11 532 4/30/2014 Pre-con held, ready for construction

Ansley at Roberts Lake 2013126 Buncombe Co. 296 2,534 6/2/2014 Pre-con held, ready for construction

STF Precision 2013084 Buncombe Co. Comm. 199 5/29/2014 Pre-con held, ready for construction

Hunt Hill Apartments 2013111 Asheville 180 1,729 3/5/2014 Pre-con held, ready for construction

Hyde Park 2013058 Arden 65 3,062 12/3/2013 Pre-con held, ready for construction

Ramble Block "D" 2013074 Biltmore Forest 36 4,783 12/11/2013 Under Construction

Upper Kentucky Improvements 2013085 Montreat N/A 284 12/3/2013 Under Construction

Isaac Dickson School Relocation 2013033 Asheville School 504 1/13/2014 Under Construction

A.B. Tech Fernihurst Relocation 2014061 Asheville School 697 4/8/2014 Under Construction

Locust Springs 2012107 Black Mountain 18 621 3/14/2014 Pre-con held, ready for construction

Telco - Weaverville Weaverville Comm. 110 5/12/2014 Pre-con held, ready for construction

Cottages at Glen Oak 2013142 Avery Creek 45 1,569 4/9/2014 Pre-con held, ready for construction

Biltmore Lake Block "J2" 2013128 Biltmore Forest 14 1,541 2/4/2014 Pre-con held, ready for construction

TOTAL 2,511 77,934

Page 2 of 2

Documents

Metropolitan Sewerage District MSD · Portfolio. There has been no change in the makeup of the portfolio from the prior month and all items meet statutory regulations and well as